What is an ordinary annuity? An ordinary annuity involves a series of equal payments made at the end of each period. These periods can be monthly, quarterly or annually, depending on the specific ...

The future value of an annuity is the total value of a series of recurring payments at a specified date in the future.

The present value of an annuity is the current value of future payments from that annuity, given a specified rate of return or discount rate.

“Annuity due” is a financial term that you may encounter when you are borrowing money, paying rent, saving for retirement or purchasing an annuity. Annuity due means that a payment is due at ...

How is an ordinary annuity different from an annuity due? Here's the answer and how that difference affects the annuity's value.

The formula for the future value of an ordinary annuity is F = P * ( [1 + I]^N - 1 )/I, where P is the payment amount. I is equal to the interest (discount) rate.